Auto sales Monthly Update - April 2017 - CSEC Research

Mixed signal for automobile industry

- Starting the FY18 on promising note passenger vehicle sales grew by more than 15% in April 2017. Most of the passenger vehicle manufacturers have reported a double digit growth on the back of new product launches while the commercial vehicle sector is in the red due to pre-buying in March, preceding the rollout of the BS-IV emission norms from 1 April 2017 and the price increase of BS-IV vehicles especially in the medium and heavy commercial vehicle segment and buses by 8-10 percent.

Car sales continued growth streak

- Maruti Suzuki sold 151,215 units in April 2017 including 144,492 units in the domestic market and 6,723 units in exports. It had sold a total of 126,569 units in April 2016.

- Hyundai Motor India's domestic sales grew 5.7% YoY to 44,758 units in April'17 as compared to 42,351 units in April'16.

- M&M has reported sales of 19,325 passenger vehicles (comprising UVs, Cars, and Vans), down 14.7% YoY in April 2017.

- Tata motors has reported sales of 12,877 passenger vehicles (+22.7% YoY) in the domestic market against 10,495 units in the same month last year.

- Toyota Kirloskar sales grew by 51.6% YoY to 12,948 units in the domestic market as compared to 8,539 units in the same month previous year.

HMSI overtakes Bajaj in Motorcycle sales

- Hero Motor, the market leader reported sales of 591,306 units in April 2017, down 3.5% YoY as compared to 612,739 units in the same month last year.

- HMSI sales grew by 34.3% YoY to 578,929 units in April'17 as compared to 431,011 units same month last year.

- Bajaj auto sold 329,800 units vehicle in April 2017, flat MoM.

- Royal Enfield sold a total of 60,142 units (domestic and exports), in April 2017 as compared to 48,197 units sold in April 2016.

- TVS Motor, two-wheeler sales increased by 8.4% from 222,350 units recorded in April 2016 to 241,007 units in April 2017.

Commercial vehicles sales sink amidst BS III vehicle ban

- Ashok Leyland's total sales declined by 30.4% YoY to 7,048 units in the month of April 2017 due to BS III ban , as against 10,182 units in the same month last year.

- Eicher Motor's (VECV) sales declined by 42.4% YoY to 3,089 units in April 2017 as against 5,365 units in the same month last year.

- Tata Motors' CV sales declined by 36.3% YoY to 16,017 units in April 2017 as against 25,138 units in the same month last year.

- M&M's total CV sales were up by 16.4% to 15,066 units in April 2017 as against 12,947 units in same month previous year.

Industry Outlook:

The PV segment is forecast to grow in high single digits ranging between 7-9 percent during 2017-18 according to industry body SIAM, on the back of better Pay Commission payouts and a better agricultural crop sowing. Adaptation of BS-IV standards is likely to have a neutral impact on the Indian auto industry. In the passenger vehicle segment, most manufacturers shifted to BSIV manufacturing well within time and will not be impacted adversely.

Source : Equity Bulls

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